Ivanhoe Footwear Co. produces high-quality shoes. To prepare for next year's marketing campaign, the company's controller has prepared the following information for the current year, 2022: Variable costs (per pair of shoes) Direct materials Direct manufacturing labour Variable overhead (manufacturing, marketing, distribution, customer service, and administration) Total variable costs Fixed costs Manufacturing Marketing, distribution, and customer service Administrative Total fixed costs Selling price per pair of shoes Expected revenues, 2022 (50,300 units) Income tax rate Calculate the break-even point in units for 2022. Break-even point units $39 18 $2,640,000 $180 23 455,000 $9,054,000 $80 785,000 40% $3,880,000
Ivanhoe Footwear Co. produces high-quality shoes. To prepare for next year's marketing campaign, the company's controller has prepared the following information for the current year, 2022: Variable costs (per pair of shoes) Direct materials Direct manufacturing labour Variable overhead (manufacturing, marketing, distribution, customer service, and administration) Total variable costs Fixed costs Manufacturing Marketing, distribution, and customer service Administrative Total fixed costs Selling price per pair of shoes Expected revenues, 2022 (50,300 units) Income tax rate Calculate the break-even point in units for 2022. Break-even point units $39 18 $2,640,000 $180 23 455,000 $9,054,000 $80 785,000 40% $3,880,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ivanhoe Footwear Co. produces high-quality shoes. To prepare for next year's marketing campaign, the company's controller has
prepared the following information for the current year, 2022:
Variable costs (per pair of shoes)
Direct materials
Direct manufacturing labour
Variable overhead (manufacturing, marketing, distribution, customer
service, and administration)
Total variable costs
Fixed costs
Manufacturing
Marketing, distribution, and customer service
Administrative
Total fixed costs
Selling price per pair of shoes
Expected revenues, 2022 (50,300 units)
Income tax rate
Calculate the break-even point in units for 2022.
Break-even point
units
$39
18
$2,640,000
$180
23
455,000
$9,054,000
$80
785,000
40%
$3,880,000
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